USD/JPY takes back some losses, but vulnerable to risk-off rallies

USD/JPY has managed to take back most of its early losses triggered by a risk aversion rally on the back of the US election outcome.

Unexpectedly Republican Donald Trump became the 45th elected US president, with its implications for markets and the economy still to be seen.  A Trump victory is viewed as negative for financial markets as his policies are source of uncertainty.

USD/JPY fell to a 1-month low of 101.18  (matching October’s low) as safe-haven demand benefited the yen, but then the pair turned higher, climbing to the 104.20 area. The pair was last trading at 103.90, still down 1.14% on the day.

USD/JPY technical levels

In terms of technical levels, next resistances could be found at 105.49 (Oct 28 high), 106.00 (psychological level) and 106.60 (Jul 27 high). On the flip side, supports are seen at 102.54 (Nov 3 low), 101.18 (Nov 9/Oct 3 low) and 100.74 (Sep 30 low).

To learn more about this topic, check our video analysis:

USDJPY from Tip TV Productions on Vimeo.